Canada’s Expensive Homes

I was recently featured in an article in Forbes.com commenting about Canada`s Most Expensive Homes. Many home buyers especially new home buyers may wonder why would this matter to them?

As the prices of homes continue to rise, it represents the fact that Canada has a healthy housing market. Remember, this isn`t like the rise of the housing market in the 80`s. Many factors have changed such as the cost of living and the US subprime lending situation, the fact that Canada can sustain a healthy housing market bodes a definite positive for us Canadians.

Multi-million dollar homes are on the rise in Canada and that is mostly in part to baby boomers and their inheritances. In the first quarter of 2007, 1,237 homes priced at $1 million and up were sold in the GTA, Calgary and Vancouver[1]. From experience, I have seen the rise in the prices of homes in some of Toronto`s elite areas as it is reflected in the properties that I list on a continuous basis and can start at anywhere from $2 million and up. Although these classes of elite homes once known as "the carriage trade" are becoming a hot commodity, supply is rare.

Even though this seems like a big deal, Canada is still has a bit of a ways to catch up to our friends south of the border where these prices are not uncommon. In New York City, a buyer could easily spend $1 million dollars on a condo. It is important to bear in mind that buyers of these types of homes are concerned with the complete package of the home and what it has to offer. Whether it be the spectacular view or the unique features of the homes itself these homes represent the future of Canadian standards of living.

Read about Canada’s Most Expensive homes and see the pictures.
Next post topic: A Guide to the Real Estate Market

[1] http://www.forbes.com/2007/01/30/most-expensive-canada-forbeslife-cx_lk_0131canadasmostexpensivehomes.html

Top Reasons to have your Mortgage Pre-Approved

If you still aren’t convinced about the importance of pre-approved mortgages, take a look at the U.S. subprime loan crisis and their high ratio of defaulted mortgage loans. Country Wide Financial (one of America’s major leading mortgage lending firms) posted in their 4th quarter that 19% of subprime borrowers had missed a payment.[i]

The advantages of pre-approved mortgages far outweigh the hassle that some home buyers believe that it can be. For instance, many home buyers are not aware that when you are pre-approved, you can be guaranteed an interest rate for a period of time and for the pre-approved amount.

Another advantage is ease of convenience. Based on your pre-approved amount your realtor can search for properties within your “set budget”, therefore, saving time by narrowing the search. Once you and your realtor have found a property that you would like to make an offer on, pre-approval comes in handy when in a bidding war with other potential buyers for home. Some sellers are more likely to accept an offer from a buyer who has been pre-approved as it
cuts down on the wait time to move their home from conditionally sold to a firm sale.

Pre-approval puts you in the driver’s seat because now you can confidently search for a home that you know that you can afford. Let’s not forget about the ease of mind that this provides. So many times, home buyers search for homes that they believe that they will be mortgage approved for, make an offer, only to find out the deal fell through because their financing wasn’t secured.

The best advice that I can give anyone, is to do your homework before picking up the phone to call a realtor. There are various types of mortgages and terms that you should become familiar with and it helps when you know what the mortgage specialist is talking about. Remember, buying a home can be a daunting task but by being organized and prepared you can be one step closer to your new home.

[i] http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2007/04/

5 Tips on How To Make Your Home More Marketable

1. List the Pros – by viewing the home from a buyer’s perspective, you can easily make a list of the home’s positive features which will then allow your realtor to emphasize those qualities when listing your home.

2. Add curb appeal – the housing market tends to see an increase in sales usually during the spring and summer seasons. Therefore, cutting the grass and adding eye catching landscaping will not only boost your home’s visibility but add to the attractiveness of the home.

3. Make needed repairs – invest in fixing up the some of patches of worn out paint on the walls with a fresh coat. Don’t focus on the fixing the minor cracked tile, instead of waiting for potential buyers spot a problem take the initiative to make all necessary repairs. It will benefit you in the long run and reduces the chances of turning of a potential buyer.

4. Clean and organize your home – deodorize and steam clean your carpets. Put some extra elbow grease in and clean your windows. These “chores” help to make an impression on buyers who are coming to view the home. Organize the clutter and get rid of the junk that you maybe hiding in a closet or the basement. It is important to realize that clutter only makes the space in your home appear smaller. By clearing out the clutter, you give the illusion of a much more spacious liveable area.

5. Set the tone – with neutral and warm colours throughout the house. As much as you love the leopard print wallpaper that might not be your potential buyer’s style. Remember, they are picturing it as they would see themselves in the home and you wouldn’t want to be responsible for your home not being sold because of the hot pink walls.

Staging your home is very important and could mean the difference between your home being sold within two days versus two months. Professional stagers are available to come in and assist you with staging your home to make it stand out to the crowd.

Have a question? Post to the blog so that Elli can give you her feedback.

Top 4 Features to look for in a Neighbourhood

Now that you’re in the market for buying a home, you may or may not have decided what type of neighbourhood you would like to live in. Choosing a neighbourhood is not just simply choosing a “nice area” based on a location that you prefer but buyers should also be looking for neighbourhoods with sustainable features when purchasing their home.

The Canada Home and Mortgage Corporation defines sustainable features as “an area that meets your needs while protecting the environment and leaving an affordable legacy.”[1] These types of features in an area can help to improve the quality of life as well as being a safe and pleasant place to live. These neighbourhoods can also include the following.

1. They provide close, convenient access to amenities such as work, schools, shopping, etc...This allows for people who are in these neighbourhoods to spend less time in cars driving and more time either commuting by public transportation or walking. This is a two pronged benefit because you are not only lowering the emissions levels being sent out into our environment, but also taking the time to invest in your health by walking or biking wherever possible.

2. They offer a variety of house types that give you the option of establishing a foundation within a neighbourhood that allows you to build roots, but also being an area that is able to move through life’s changes with you. For instance, you can find a neighbourhood that will allow you to purchase a home that you can start a family in. Then, as your family changes you can still stay within that same neighbourhood and find a home that best suits your changing needs.

3. They provide a safe and friendly atmosphere. No one wants to be stuck in a neighbourhood where they do not feel comfortable walking to the store. If you are going to build roots in this neighbourhood you want it to be somewhere that you will enjoy being.

4. It offers the best value for your dollar not just within the physical property but this refers back to the neighbourhood being easily accessible. Nowadays, most families have two cars for their household. However, if you are able to get around without the use of a second car then this cuts back on your costs for fuel and maintenance for two cars and therefore giving you a higher ROI.

As advantageous as sustainable features are, this option for choosing a neighbourhood is not for everyone. It isn’t advisable to look for a neighbourhood with these features if you are a home buyer who doesn’t want a smaller home to maintain or if you don’t mind commuting in traffic. However, with the benefits of sustainable features why wouldn’t you incorporate this into your home search?

You can find a list of Canadian cities that offer neighbourhoods with these important features at http://www.cmhc-schl.gc.ca/en/index.html.

[1] Thinking of Moving to A Different Home – www.chmc-schl.gc.ca/en/index.html